UK charities are in ‘the last chance saloon’

William Shawcross, chairman of the Charity Commission, wrote an opinion piece under the ‘Thunderer’ banner in The Times newspaper on Thursday May 26, 2016. In this thoughtful, and provoking article, Mr Shawcross opined that charities, in the area of regulating fundraising practices, must embrace a:

“Last chance for self-regulation. Otherwise the task will fall upon the Charity Commission, which oversees the sector. It is far better that charities continue to set their own standards - but they must do it well.” (my italics)

The last significant use of the pejorative phrase, ‘last chance saloon’, was by the editor of the Financial Times, Lionel Barber when giving evidence to the press standards inquiry in 2012. Lord Justice Leveson’s response was:  "that was 20 years ago" – a reference to the original "last chance saloon" quote made by former cabinet minister David Mellor at the time of the first of two inquiries into press standards led by Sir David Calcutt in the early 1990s.

My judgement is that a Shawcross led Charity Commission would be reluctant to impose swingeing measures on the sector. However, if it felt compelled to act - by political pressures, continuing bad press or perceived low public opinion - it would do so.

Perhaps it is coincidence (but I suspect not wholly) that on the same opinion page was a longer article by Edward Lucas. Headlined “We’ll all suffer if Google doesn’t clean up its act”, Lucas outlines the difference between what is lawful behaviour for business and what is right (in the eyes of consumers and customers). He identifies companies ‘paying their fair share of tax’ as the next fashionable trend after environmental awareness and being Green (1970s); workers rights after the collapse of unions (1980s), corporate social responsibility (CSR) in the 1990s, and in the noughties, “It stopped being OK to rip off suppliers by paying late.” All of these issues carried the risk to damage the reputations of individuals (CEOs), companies and business sectors.

I would suggest that fundraising is the equivalent hot button issue for the charity sector. Whatever the specifics of their views most Britons would agree that charity is a ‘public good’. The Charities Aid Foundation’s CAF World Giving Index 2015 found that the UK is now the most generous nation in Europe. It is the sixth most generous country in the world. The British people give both their money (donations) and their time by volunteering in huge numbers.

The brand of UK charity endangered by the corrosive erosion of trust fed by a media hungry for new prey. To rebuild trust and restore confidence charities, jointly and severally, need a clear assessment of the risks to reputation, and future ability to influence key decision-makers. The key is not to try to control the media but to manage the media.

This is a fundamental risk that left unchecked will eat away at the high standing, nationally and globally, of the UK charity sector. This is a recent report in the Australian online publication Pro Bono Australia.

“The UK Charity Commission has begun public consultations on new discretionary powers to disqualify charity trustees – powers the Australian regulator already has, but is yet to use.

The new powers would allow the UK commission to disqualify certain people from being trustees for a period of up to 15 years, in circumstances where they are judged not fit to act.

The rules are included in the Charities (Protection and Social Investment) Act 2016 which will come into effect in July 2016 as part of the commission’s latest regulatory work following a storm of public protest around trust and confidence in UK charities.” (my italics)

Read the rest of the article here.

William Shawcross’ Times article should serve as both a timely warning, and a clarion call from a trusted friend.

Is the UK charity sector in as much danger as I believe? Share your thoughts, and let’s start a conversation.

About the author

Kofi A. Dwinfour is the founder of Third Way Consulting (3WC) Ltd. This new kind of consulting firm is focused on helping charities, voluntary groups and the public sector be business like without being like business. The firm is particularly concerned with developing growth strategies. Email him: [email protected]. Follow him on Twitter: @3wcLtd